Stakeholders

CSR takes many different stakeholders into account. A stakeholder is a person or organisation that has influence on a company and/or is influenced by that company. Examples are employees, consumers, governments and social organisations (trade unions, nature and environmental organisations and the like). Each of these has its own interests and needs.

It is important for the credibility and reputation of a business that it enter into dialogue with all the parties concerned and respond to any questions they have asked with regard to their needs and wishes by discussing with them what the business can and cannot or will not agree to. Ideally the business will try to strike a good balance between the interests and needs of the various parties. There are stakeholders both inside and outside the company. Employees and shareholders are of great importance inside the company. On the outside there are trade unions, social organisations, governments, suppliers and creditors. The desires of the stakeholders can be different and conflicting. Striving for maximum profit, for example, can mean that production costs must be kept as low as possible. That can clash with the interests of employees, who want higher salaries. Or the company’s neighbours may demand less noise pollution, while the company cannot or will not comply with this demand for technical or financial reasons.

CSR also requires openness and transparency. That is why accounting for its activities has become an important activity for businesses. Sustainability Reports or CSR Annual Reports are being published more frequently. (for the website addresses of various organisations go to Links)